The VanEck Bitcoin Trust, a Delaware statutory trust, reported significant financial growth in its latest 10-K filing for the fiscal year ending December 31, 2024. The Trust's net asset value (NAV) surged to $1.28 billion, a remarkable increase from just $100,000 at the end of the previous fiscal year. This growth was primarily driven by a substantial rise in the price of bitcoin, which increased by 111.28% during the year, from $44,182 to $93,349. The number of outstanding shares also rose dramatically from 8,000 to 48.5 million, reflecting the issuance of 63.1 million shares and the redemption of 14.6 million shares throughout the year.
The Trust's operations were characterized by a net increase in net assets resulting from operations of approximately $418.97 million, attributed to a net unrealized appreciation on investments in bitcoin of $384.61 million and a net realized gain of $34.41 million from bitcoin sold for share redemptions. The Trust incurred a sponsor fee of $63,571, which was significantly lower than the previous year's fee due to a waiver agreement that reduced the fee from 0.25% to 0.20% of average daily net assets for the first $2.5 billion in assets.
Strategically, the Trust has maintained a passive investment approach, solely focused on tracking the price of bitcoin without engaging in speculative trading. The Trust's shares are traded on the Cboe BZX Exchange under the ticker symbol "HODL." The filing also noted that the Trust's bitcoin is held by Gemini Trust Company, LLC, and Coinbase Custody Trust Company, LLC, both of which are responsible for safeguarding the Trust's assets.
Looking ahead, the Trust's management expressed optimism about the future, although it acknowledged the inherent volatility and risks associated with the bitcoin market. The Trust does not actively manage its investments to mitigate price fluctuations, which could impact the value of the shares. The filing highlighted the potential for regulatory changes and market conditions to influence the Trust's operations and the broader digital asset landscape. The Trust's ability to attract and retain Authorized Participants and Liquidity Providers will be crucial for maintaining liquidity and operational efficiency in the future.
About VanEck Bitcoin ETF
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